Under what conditions can City Wide reject a proposed sale of a City Wide franchise?

According to City Wide's 2025 Franchise Disclosure Document, City Wide reserves the right to reject a proposed sale of a franchise if it determines, at its sole and absolute right, that the agreed-upon purchase price or terms between the franchisee and the prospective buyer are excessive. City Wide can also reject the sale if it believes the purchase price or terms will prevent the buyer from succeeding as a franchisee.

This provision gives City Wide significant control over who can become a franchisee and the financial terms of the transfer. By retaining the right to reject a sale based on its assessment of the buyer's potential for success, City Wide aims to maintain the overall health and reputation of the franchise system.

For a prospective City Wide franchisee, this means that even if they find a buyer willing to pay a certain price, City Wide can still veto the sale if it deems the price too high or the buyer unsuitable. Franchisees who request City Wide's assistance in finding a buyer waive any liability claims against City Wide for such rejection. Therefore, franchisees should carefully consider City Wide's criteria for evaluating potential buyers and sale terms to avoid potential conflicts or delays in the sale process.

This condition is not uncommon in franchising, as franchisors typically want to ensure that new franchisees are well-positioned for success and that the brand's reputation is protected. However, the specific terms and conditions can vary, so it's important for prospective franchisees to understand City Wide's specific requirements.